BILL ANALYSIS Ó AB 218 Page 1 Date of Hearing: April 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 218 (Melendez) - As Introduced February 2, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes the California Transportation Commission (CTC) to relinquish, to the County of Riverside, the portion of State Route (SR) 74 in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris. AB 218 Page 2 FISCAL EFFECT: 1)Potentially significant one-time costs (State Highway Account [SHA]) depending on the outcome of negotiations between Caltrans and the County and a determination by Caltrans that the relinquishment is in the best interest of the state. (See Comment #1) 2)Significant long-term maintenance and repair savings to Caltrans, if the CTC exercises its authority to relinquish the highway segment. COMMENTS: 1)Background. Legislation is required before any segment of state highway can be relinquished to another governmental entity. Relinquishment provides the recipient agency with more control over a local transportation project and relieves Caltrans of any further responsibility to improve, maintain, or repair infrastructure related to the relinquished segment of state highway. According to Caltrans, in recent years the initial cost of relinquishments has ranged from $0 to over $1 million per centerline mile. These costs are driven by a number of factors, including roadway condition, projected maintenance costs and any planned capital projects. The actual cost of a particular relinquishment is negotiated directly with the local agency, but must be based on a cost-benefit analysis using a 10-year analysis period. Prior to this analysis, the baseline cost is assumed to be $0. All proposed costs beyond the baseline are subject to review and approval by the Department's Relinquishment Advisory Committee to ensure statewide consistency in application of the AB 218 Page 3 established evaluation criteria. 2)Purpose. In support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 74 would allow the County to manage and maintain the segment thereby reducing the state taxpayer burden as well as allow for much needed maintenance improvements along the route. 3)Related Legislation. The administration is proposing budget trailer bill language establishing an administrative process for relinquishing state highways and requiring Caltrans to report to the CTC biannually on which regional state highways routes are the best candidates for relinquishment. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081